Selection of condos available for sale in Downtown San Diego will continue to be tight. As of September 2020 about 3% of the total condo market is up for sale (roughly 350 for sale out of 10,850 total condos). One new high rise condo was completed in 2019 (Savina), which is now 80% sold out. The second newest tower (Pacific Gate) was complete in 2018 and the 3rd newest building was completed in 2009. No new condos are under construction and the next new condo building will be completed some time after 2023, as it has not started yet.
For sale inventory will remain tight as buyers run out of brand new condos to buy and current downtown owners in older buildings have already resold their current condos to move into the two newer buildings. The commercial development of the western waterfront will make the condos in the Columbia neighborhood more desirable. The California Association of Realtors is projecting the median price in the State to increase 2.5% in 2020, following a 4.1% increase in 2019 (they foretasted only a 3.1% gain). So much slower appreciation rates coming they say, usually if GDP is growing, prices are increasing.
At the end of the 2nd quarter (end of June) our average price of a downtown condo is up 1% over same period in 2019 and note the luxury market is up 6% over Q2 2019. Prices did soften a bit in the second quarter of 2020 compared to the first quarter which was a really strong quarter reflecting the strength of the economy prior to Covid-19 showing up. Sales volume fell by 50% during Q2 because of the stay at home orders. Buyer activity is very busy since early June. Click here to see my price history chart.
Downtown average prices in 2019 were down 2.4% when looking just at resales through the MLS. One thing the MLS does not report is new condo sales, between Savina and Pacific Gate which was about 20% of the sales downtown last year. If you add those two buildings new sales in the average price spikes up dramatically because their prices are higher than most resales. One thing is for sure, no more new inventory getting added after this year for several years and that alone will put upward pressure on prices. See my blog about the 4,000 jobs that may be headed to downtown and the impact it might have on prices of downtown condos.
Mortgage rates are at historic lows and the nations economy (GDP) and stock market are also trending up although erratically.
Beautiful views of San Diego from the Convention Center to the Coronado Bridge. Sought after unit in The Harbor Club high-rise building in the Marina District. Enjoy th...
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